Soon after his joining the office as Chief Minister of Madhya Pradesh Mr.Kamal Nath waives farm loans. In his first act after taking charge as Madhya Pradesh chief minister, Kamal Nath signed off on a huge farm loan waiver promised by the Congress during its poll campaign. Loan waiver will cost at least Rs. 50,000 crore, according to reports. Earlier Congress had promised loan waiver ahead of elections

A loan waiver for debt-hit farmers headlined Congress' election promises in the three heartland states it took from the BJP, including Rajasthan and Chhattisgarh.

"The new Chief Minister of MP kept his promise just in two hours what he had assured he would do within 10 days of taking power," the Congress in Madhya Pradesh tweeted. Some 33 lakh farmers, owing Rs. 70,000 crore in unpaid dues, will benefit from the move. Congress president Rahul Gandhi, who attended Kamal Nath's swearing-in, tweeted, "1 done, 2 to go." Mr Gandhi was referring to similar promises in Rajasthan and Chhattisgarh.

Questioned over the economic merits of such a move, Kamal Nath replied back: "I want to ask the banks and economists that when you waive off loans of huge industrialists, it doesn't bother you but when it's about farmers, then you get a stomach ache?"

Loan waivers were an important issue in the recent state elections. The BJP, which ruled Madhya Pradesh for 15 years before losing last week, is seen to have suffered most in parts of the state with more rural and farm distress. The loan waiver will cost around Rs. 50,000 crores, says reports. loans up to Rs. 2 lakh will be waived from nationalised and co-operative banks till March 3.